Use the Following to Answer Question

question 169

Multiple Choice

Use the following to answer question
Figure: Bran Muffins and Corn Flakes PPF
-(Figure: Bran Muffins and Corn Flakes PPF) The graph shows the possibilities frontier for a bakery that makes corn flakes and bran muffins.Which of the following is NOT correct?

• A) The opportunity cost of increasing production of corn flakes from 200 to 300 pounds is 50 pounds of bran muffins.
• B) Due to limited resources,there is a tradeoff between producing corn flakes and bran muffins.
• C) The graph implies that resources well-suited for making corn flakes are not as well-suited for producing bran muffins.
• D) The company faces decreasing opportunity costs.

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Definitions:

Decline Stage

A phase in the product life cycle characterized by a decrease in sales and profitability, indicating that the product is nearing the end of its market life.

Product Life Cycle

The stages through which a product goes from conception to decline, including development, introduction, growth, maturity, and decline.

Product Life Cycle

The stages a product goes through from introduction to growth, maturity, and finally decline in the market.

Harvesting Strategy

A business approach focused on extracting maximum profit from a product, market segment, or business unit with no intention of long-term investment.